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Tech Sector to Grow in 2010

Area Development News Desk

01/12/2010

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According to a new analysis from Forrester Research Inc., global spending on technology products and services is expected to grow 8.1 percent in 2010, to more than $1.6 trillion. U.S. tech spending is expected to rise 6.6 percent, to $568 billion. The projected increases follow sharp declines in 2009, when businesses and governments slashed their purchases of PCs, computer peripherals, and communications equipment in response to the economic downturn.

Even with the expected rebound, "the level of computer equipment purchases in 2010 will still be lower than in 2008 or even 2007," said Forrester analyst Andrew Bartels. Pent-up demand for new computers and updated software programs stands to benefit the companies that make them. The October launch of Microsoft's latest computer operating system, Windows 7, also gives companies a reason to start replacing PCs. The research firm also expects spending on communications equipment to pick up in 2010, partly because of demand in emerging markets that are building wireless and broadband networks.